Wells Fargo Keeps Their Hold Rating on Newell Brands

By Ryan Adsit

Wells Fargo analyst Bonnie Herzog maintained a Hold rating on Newell Brands (NYSE: NWL) yesterday and set a price target of $25. The company’s shares closed yesterday at $27.20, close to its 52-week low of $23.85.

Herzog said:

“We recommend investors hold the stock but refrain from adding new money at this time since we see limited positive catalysts given: (1) Ongoing uncertainty surrounding who is going to run the company? Polk or Starboard/Jarden with likely disruptions regardless of the outcome; (2) Limited upside potential from Q4 results & CAGNY presentation given Q4 pre-announcement and mgmt’s diminished credibility; (3) Difficult fundamentals (tough topline comps for Elmer’s in 1H18 based on our analysis, continued retailer destocking pressures, Toys ‘R Us bankruptcy, slow category growth, etc); and (4) Limited return of capital to shareholders in the n.t. given high leverage. Bottom line – Despite what appears to be a relatively cheap valuation for NWL, we are incrementally more negative/cautious on the stock given likely disruptions, continued uncertainty and pressures on fundamentals. As such, we expect the stock could be range bound in the n.t.”

According to TipRanks.com, Herzog is a 4-star analyst with an average return of 11.4% and a 83.3% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as The Estée Lauder Companies Inc, Constellation Brands Inc, and Edgewell Personal Care.

Currently, the analyst consensus on Newell Brands is Hold and the average price target is $28.63, representing a 5.3% upside.

In a report issued on January 30, Oppenheimer also reiterated a Hold rating on the stock.

The company has a one-year high of $55.08 and a one-year low of $23.85. Currently, Newell Brands has an average volume of 9.13M.

Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NWL in relation to earlier this year.

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Newell Brands, Inc. engages in the manufacture, marketing, and sale of consumer and commercial products. It operates through the following segments: Writing, Home Solutions, Tools, Commercial Products, Baby & Parenting, Branded Consumables, Consumer Solutions, Outdoor Solutions, and Process Solutions.